On June 20, U.S. cryptocurrency exchange giant Coinbase announced that it has officially obtained a Markets in Crypto-Assets (MiCA) license from Luxembourg’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF). With this approval, Coinbase becomes the first U.S.-based crypto company authorized under MiCA to operate across all 27 EU member states.
MiCA Passport Mechanism Fully Activated as Coinbase Consolidates Compliance Strategy
MiCA came into effect in June 2023, aiming to establish a unified regulatory framework for crypto asset service providers (CASPs) across the European Union. Under this regulation, a company that obtains a license in any one member state can “passport” its services across the entire EU, eliminating the need for country-by-country licensing and significantly simplifying the compliance process.
Prior to this, Coinbase had already secured local licenses in Germany, France, Ireland, Italy, the Netherlands, and Spain. Now, with the MiCA license, it has effectively unified all permissions under one regulatory umbrella—realizing a fully integrated operational strategy within the EU.
In a post on X, Coinbase stated:
“With the MiCA license obtained in Luxembourg, we are now able to offer our full suite of crypto products and services—including spot trading, custody, and staking—to 27 countries and 450 million people.”
Luxembourg Replaces Ireland as Coinbase’s New European Headquarters
The approval also marks a strategic shift in Coinbase’s EU operations hub—from Ireland to Luxembourg. Daniel Seifert, Coinbase Vice President and EMEA Managing Director, explained that Luxembourg was chosen for its “forward-looking financial policies” and “whole-of-government support for blockchain.” Over the past several years, Luxembourg has enacted four blockchain-specific laws, establishing a clear and comprehensive regulatory environment.
While Luxembourg will become the core hub, Coinbase still plans to expand its Dublin office by hiring around 50 additional staff to maintain operations in Ireland. At the same time, the company will open a new office in Luxembourg and hire at least 20 local employees to strengthen its continental European presence.
Concerns Over ‘Regulatory Arbitrage’ Emerge, Testing MiCA’s Credibility
However, the passporting model has also reignited concerns about potential “regulatory arbitrage.” Critics argue that crypto firms may seek licenses in countries with limited regulatory capacity or lower oversight standards, which could undermine the integrity of the broader EU framework.
Peter Curk, CEO of ICONOMI, warned that such a model could trigger a “race to the bottom” in regulatory standards. “If countries with weak oversight issue key licenses, it will inevitably erode consumer protection, cross-border trust, and the EU’s reputation in the digital finance space,” he stated.
Notably, Malta—once a favored destination for crypto licensing—fined OKX $1.2 million in April for early anti-money laundering compliance violations. In response, the European Securities and Markets Authority (ESMA) is currently investigating Malta’s licensing process and plans to release a formal report.
Coinbase CEO Brian Armstrong commented:
“MiCA is one of the most forward-thinking crypto regulatory frameworks globally. It sets a high standard for the industry.”
He added that Luxembourg, as a financial center, not only provides a solid legal infrastructure but also demonstrates an open and innovative regulatory mindset—serving as a model for crypto companies worldwide.